May 18, 2009


Marc Faber on Economic Armageddon
Buy real assets, he says.
http://list.lewrockwell.com/t/1442051/20930787/86136/0/


Prepare for War, the Death of capitalism and Bankruptcy of the US Government 
(not necessarily in that order)

A vintage performance from the author of "The Gloom, Boom & Doom Report". 
This morning - living up to his reputation for bearishness - Marc Faber 
forecast a litany of unpleasant events ahead.

His key message is: buy real assets. He thinks it will take years for the 
global economy to recover, but when it does the effect of governments' 
printing money will ultimately reignite inflation.

"If you're in any field, you should own a farm because one day you will be 
grateful that you are able to grow your own agricultural produce."

Recovery will be slow because government meddling in the markets will 
postpone it. He argues that the final low for markets and for growth will 
only come when the debt and losses have been cleaned out of the system.

Unless the system is cleaned out of losses, "the way communism collapsed, 
capitalism will collapse."

"The best way to deal with any economic problem is to let the market work it 
through."

The Fed is destabilizing, it's creating "enormous volatility".

Marc thinks the yields in government bonds bottomed out in December 2008 - 
rather than lend money to the US government he suggests buying a portfolio 
of large, quality blue chip stocks. They will grow and survive - and 
reposition to take advantage of the rising importance of the emerging 
economies.

 
Read the rest of the article
http://lewrockwell.com/orig6/faber4.html




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audio:
Jim Rogers: Economic Advice to My Children (and You)
A podcast with the Sage of Singapore.
http://list.lewrockwell.com/t/1442051/20930787/86134/0/

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